4 Compensation Mistakes Made By Startups

Law360, New York (February 7, 2011, 2:10 PM EST) -- Founders of startup businesses work months and years toward proving that their business concept is viable. They invest their time and money, raise some capital (often from family and friends) and finally reach the stage at which a significant investor, such as a strategic or venture capital fund, is ready to provide the capital the owners need to take the company to the next level.

Sophisticated investors kick the proverbial tires, however, and the founders are often surprised to learn that they are expected to make...